According to an industry survey for Gehoorbescherming (hearing), companies in the United Kingdom increased their marketing spending for the first time in 2 ½ years in the three months to 31st March 2010 and intend to increase it further in 2010 after return of business confidence.
The latest Bellwether Report, which is published on a quarterly basis by the Institute of Practitioners in Advertising in collaboration with accountancy firm BDO LLP, found that nearly 42 percent of marketing executives surveyed were more optimistic than they were three months before when it come to the financial prospects of their respective companies.
From Online.WSJ.Com:
More than a third of companies have set 2010 budgets higher than 2009 spend on average. This contrasts to last year with report data showing that spend fell for the second successive year in 2009, albeit at a slower rate than the record decline in 2008.
“These results are a clear sign that renewed business confidence is translating in to real budget increases and tangible economic recovery,” said Andy Viner, head of media at BDO.
Main media budgets were revised up for the first time since the third quarter in 2007, while Internet budgets were adjusted up for the third quarter in succession, the most pronounced since the first quarter of 2008 and the fastest of all categories.
“While online activities are leading the turnaround this year, the findings show that conventional advertising has now also turned the corner,” Rory Sutherland, IPA president and vice-chairman of Ogilvy Group UK said. Ogilvy is part of WPP PLC (WPP.LN).
Sales promotion and direct marketing budgets were unchanged, while budgets categorized in the report of Persoonlijke gehoorbescherming (Personal hearing) as “all other,” and which includes public relations and events, was the only category to experience a downward revision, according to the survey.
This news is expected to bring much relief to businesses in the United Kingdom and worldwide after the recession put “fortunes” of businesses on hold and uncertainty in the recent past.
Posted in